CITYGOLD INVESTMENT PVT. LTD. THANE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 7(3) AND ORS

PDF · subscribers
WP/4333/2022HC BombayHCBM01012639202211 April 2022Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE N. R. BORKAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that notices issued under Section 148 of the Income Tax Act, 1961, after March 31, 2021, which followed the old procedure that stood replaced by the Finance Act, 2021, are bad in law. The Court reiterated its prior ruling in Tata Communications Transformation Services Limited Vs. Assistant Commissioner of Income Tax 14(1) & Ors., stating that such notices must be quashed. Consequently, the notices impugned in the present writ petitions were quashed and set aside. The Court noted that even if an assessment order had been passed pursuant to these invalid notices, it would be considered non-est. The petitions were disposed of accordingly.

What were the facts?

The petitioners, various assessees, have filed writ petitions challenging notices issued under Section 148 of the Income Tax Act, 1961. The core issue is that these notices were issued after March 31, 2021, but the authorities followed the old procedure for issuing such notices, which was replaced by the Finance Act, 2021, effective from April 1, 2021. The counsels for the petitioners stated that no assessment orders had been communicated to them. The High Court accepted this statement, noting that even if an assessment order were passed, it would be invalid as the Section 148 notice itself is being set aside.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, after March 31, 2021, are invalid if they follow the pre-amended procedure, which was replaced effective April 1, 2021? (Question of law) Assessee's contention: The assessees argued that notices issued under Section 148 after the effective date of the Finance Act, 2021, but still adhering to the old, repealed procedure, are bad in law and liable to be quashed. They relied on the High Court's own previous decision in Tata Communications Transformation Services Limited Vs. Assistant Commissioner of Income Tax 14(1) & Ors. Revenue's contention: The judgment does not record any specific arguments presented by the Revenue in response to this issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Heard together (63 matters)

WP(ST)2738/2022
WP/4144/2022
WP/4043/2022
WP/4290/2022
WP/4291/2022
WP/4292/2022
WP/4333/2022
WP/4351/2022
WP(ST)/6292/2022
WP 3777/2021
WP 3778/2021
WP 3781/2021
WP 3782/2021
WP/3783/2021
WP/3784/2021
WP 3820/2021
WP/3852/2021
WP/3886/2021
WP/3970/2021
WP(L)/28569/2021
WP(L)/28582/2021
WP(L)28588/2021
WP(L)/29879/2021
WP(L)/31178/2021
WP/16/2022
WP/30/2022
WP 45/2022
WP(L)/68/2022
WP/222/2022
WP 226/2022
WP/457/2022
WP 524/2022
WP/526/2022
WP/534/2022
WP/939/2022
WP/990/2022
WP/1026/2022
WP/1055/2022
WP/1081/2022
WP/1105/2022
WP/1147/2022
WP/1178/2022
WP/1185/2022
WP/1186/2022
WP/1187/2022
WP/1190/2022
WP/1192/2022
WP/1199/2022
WP/1203/2022
WP/1210/2022
WP/ 1213/2022
WP 1220/22
WP/1221/2022
WP/1226/2022
WP 1229/2022
WP 1231/22
WP/1232/2022
WP/1235/22
WP/1247/22
WP 1251/22
WP 1252/22
WP/1260/2022
WP 1285/2022

Read from the judgment's own cause title. This page is filed under one of them.

GROUP-I 903 TO 1145.doc - Chitra Sonawane IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION (903) WRIT PETITION (STAMP)NO.665 OF 2022 Premji Lakhamshi Karia ….Petitioner V/s. The Income Tax Officer, Ward-3 & Ors. …. Respondents. WITH (904) WP(ST)2738/2022, WP/4144/2022, (905) WP/4043/2022, (906) WP/4290/2022, (907) WP/4291/2022, WP/4292/2022, (908) WP/4333/2022, (909) WP/4351/2022, (911) WP(ST)/6292/2022 …….

Adv. Paras S. Savla i/b Harsh Shah, Radha Halbe, Atul K. Jasani i/b Harsh Kothari, Suyog Bhave a/w Rucha Vaidya i/b Farzeen Khambatta, Fenil Bhatt i/b Mint and Confreres, Dr. Avinash Poddar and Deepali Kamble, Ritika Agarwal a/w Rachna Bhanushali i/b Acelegal, Satyajeet Dighe for Petitioner in respective matters. Adv. Ashok Kotangale a/w Vivek A. Bajpayee, Arvind Pinto, Suresh Kumar for Respondent Revenue in respective matters. WITH ORDINARY ORIGINAL CIVIL JURISDICTION

(923) WRIT PETITION NO.3698/2021 Monarch Networth Capital Ltd. ….Petitioner Vs. Assessing Officer,Office of Income Tax, Ward 4(2)(1) …. Respondents. WITH (924) WP 3777/2021, (925) WP 3778/2021, (926) WP 3781/2021, (927) WP 3782/2021, (928) WP/3783/2021, (929) WP/3784/2021, (930) WP 3820/2021, (931) WP/3852/2021, (932) WP/3886/2021, (933)WP/3970/2021,(934)WP(L)/28569/2021, 1 of 5 CHITRA SANJAY SONAWANE SANJAY SONAWANE Date: 2022.04.13 18:35:48 +0530

GROUP-I 903 TO 1145.doc (935)WP(L)/28582/2021, (936) WP(L)28588/2021, (937)/WP(L)/29879/2021, (938)/WP(L)/31178/2021, (939) WP/16/2022, (940) WP/30/2022, (941) WP 45/2022, (942) WP(L)/68/2022,(943) WP/222/2022, (944) WP 226/2022, (945) WP/457/2022, (946) WP 524/2022, (947) WP/526/2022, (948) WP/534/2022, (950) WP/939/2022, (951) WP/990/2022, (952) WP/1026/2022, (953) WP/1055/2022, (954) WP/1081/2022, (955) WP/1105/2022, (956) WP/1147/2022, (958) WP/1178/2022, (959) WP/1185/2022, (960) WP/1186/2022, (961) WP/1187/2022, (962) WP/1190/2022, (963) WP/1192/2022, (964) WP/1199/2022, (965) WP/1203/2022, (966) WP/1210/2022, (967) WP/ 1213/2022, (968) WP 1220/22, (969) WP/1221/2022, (971) WP/1226/2022, (972) WP 1229/2022, (973) WP 1231/22, (974) WP/1232/2022, (975) WP/1235/22, (976) WP/1247/22, (978) WP 1251/22, (979) WP 1252/22, (980) WP/1260/2022, (981) WP 1285/2022, (982) WP/1295/22, (983) WP/1306/2022, (984) WP/1310/22, (985) WP/1319/22, (986) WP/1322/2022, (987) WP 1338/22, (988) WP/1340/22, (989) WP/1342/22, (990) WP/1346/22, (991) WP 1348/22, (992) WP/1353/22, (993) WP/1355/22, (994) WP/1358/22, (995) WP/ 1361/2022, (996) WP 1376/22, (997) WP/1389/22, (998) WP 1392/22, (999) WP/1397/22, (1000) WP/1399/22, (1001) WP/ 1413/22, (1002) WP/1417/22, WP/1396/22, (1004) WP/1421/22, (1005) WP/1430/22, (1006) WP/1431/22, (1007) WP/1443/22, (1008) WP/1447/22, (1009) WP/1448/2022, (1010) WP/1452/22, (1011) WP/1455/22, (1012) WP/1457/22, (1013) WP 1465/22, (1015) WP/1482/22, (1016) WP/1484/22, (1017) WP/1487/22, (1018) WP/1488/22, (1019) WP/1495/22, (1020) WP/1504/22, (1021) WP/1509/22, (1022) WP/ 1512/22, (1023) WP/1534/22, (1024) WP/1537/22, (1025) WP/1541/22, (1026) WP/1556/22, (1027) WP/1560/22, (1028) WP/1562/22, (1029) WP/1569/22, (1030) WP/1572/22, (1031) WP/1573/22, (1032) WP/1581/22, (1033) WP/1582/22, (1034) WP/1589/22, (1035) WP 1590/22, (1036) WP/1592/22, (1037) WP/1594/22, (1038) WP/1600/22, (1039) WP/1602/22, (1040) WP 1604/22, (1041) WP/1608/22, (1042) WP/1609/22, (1044) WP 1626/22, (1045) WP/1633/22, (1047) WP/1653/22, (1048) WP/1654/22, (1049) WP/1655/22, (1050) WP/1657/22, (1051) WP/1669/22, (1052) WP/1695/22, (1053) WP 1701/22, (1054) WP/1736/22, (1055) WP/1771/22, (1056) 1788/22, (1057) WP/1792/22, (1058) WP/1806/22, (1059) WP/1820/22, (1060) WP/1852/22, (1061) WP/1881/22, (1064) WP(L) 5315/22, (1065) WP(L) 5628/22, (1066) WP(L)/5638/22, (1067) WP(L)/5724/22, (1068) WP/5743/22, (1070) WP/5961/22, (1071) WP(L) 5964/22, (1072) WP(L)6222/22, (1073) WP(L) 6231/22, (1074) WP(L) 6355/22, (1075) WP(L) 6397/22, (1077) 2 of 5

GROUP-I 903 TO 1145.doc WP(L)6671/22, (1078) WP(L) 6672/22, (1079) WP(L) 6673/22, (1080)WP(L)6675/22, (1081) WP(L)6676/22, (1082) WP(L)6680/22, (1083)WP(L)6694/22, (1084) WP(L) 6717/22, (1085) WP(L) 6719/22, (1086) WP(L)6720/22, (1087) WP(L) 6724/22, (1089) WP(L) 7026/22, (1090) WP/1754/22, (1091) WP/1733/22, (1092) WP(L)/7037/22, (1093) WP(L) 7038/22, (1094) WP(L)/7042/22, (1095)

WP(L)/7087/22,

(1096)

WP(L)/7103/22,

(1097) WP(L)/7129/22, (1098) WP(L)/7184/22, (1099) WP(L) 7203/22, (1100) WP(L)/7227/2022, (1101) WP(L) 7266/22, (1102) WP(L)7272/22, (1103) WP(L)/7278/22, (1104) (WP(L)/7299/22, (1105) WP(L) 7389/22, (1106) WP(L)/7445/22, (1107) WP/1766/22, (1108) WP(L)7689/22, (1109) WP(L) 7693/22, (1110) WP(L)/7699/22, (1111) WP(L)/7706/22, (1112) WP(L) 7837/22, (1113)

WP(L)/7880/22,

(1114)

WP(L)/7899/22,

(1115) WP(L)/7905/2022, (1116) WP(L) 8006/22, (1117) WP(L) 8072/22, (1118) WP(L) 8075/22, (1119) WP(L)/8085/22, (1120) WP/1700/22, (1121) WP(L) 8171/22, (1122) WP(L)/8272/22, (1123) WP(L) 8284/22, (1124) WP/1730/22, (1125) WP(L) 8301/22, (1126) WP(L) 8519/22, (1127) WP(L) 8583/22, (1128) WP(L) 8623/22, (1129) WP/ 1769/22, (1131) WP/1876/22, (1132) WP(L)/8895/22, (1133) WP(L) 8966/22, (1134) WP/1817/22, (1135) WP/1692/22, (1136) WP(L)/9148/22, (1137) WP(L) 9150/22, (1138) WP/1856/22, (1140) WP(L) 9438/22, (1141) WP(L) 9441/22, (1142) WP/1863/22, (1143) WP(L) 9453/22, (1145) WP(L) 11467/22, ..... Mr P.J. Pardiwalla, Senior Advocate and Mr P S Jetly, Senior Advocate with Mr Amir Arsiwala, Mr Vidit Divya Kumat, Mr Pankaj Toprani, Ms Krupa Toprani, Dr Avinash Poddar, Ms Deepali Kamble, Mr Nitesh Joshi, Ms Pradnya Vairale, Ms Radha Halbe, Mr Dharan V Gandhi, Mr Subhradeep Banerjee, Mr Deep Shah, Mr Bharat Raichandani, Mr Rishabh Jain, Mr Abhishek Khandelwal, Mr Rajendra, Mr Rahul Hakani, Mr Shashi Bekal, Ms Neelam Jadhav, Ms Aasifa Khan, Mr Vipul J Shah, Mr Dinesh Gulabani, Mr Prathamesh Kamat, Ms Neena Shah, Ms Saloni Manjrekar, Mr Gaurav Gandhi, Mr Naresh Jain, Ms Neha Anchlia, Mr Mahaveer Jain, Mr Mandar M Vaidya, Mr Faran Khan, Ms Gauri Joshi, Mr Sameer Dalal, Mr N C Ranganayakulu, Mr Paras Savla, Mr Harsh R Shah, Ms Rutuja N Pawar, Ms Hetal Laghave, Mr K Gopal, Ms Neha Paranjpe, Mr Om Kandalkar, Mr Arun Jain, Mr Rohan Deshpande, Mr Suyog Bhave, Ms Rucha Vaidya, Ms Niyati Mankad, Mr Sameer Dalal, Mr Sanjiv M Shah, Mr Satish Mody, Mr Ravi Sawana, Ms Ushashi Datta, Mr Sashi Tulsiyan, Mr P C Tripathi, Mr Pravin Tembhekar, Mr Divesh Chawla, Mr Jitendra Jain, Mr Madhur Agrawal, Mr Shreyash Shah, Mr Ankit Namdeo, Mr Hiten Chande, Ms Jasmin Amalsadvada, Mr Jash 3 of 5

GROUP-I 903 TO 1145.doc Dalia, Mr Ranit Basu, Ms Maitri Malde, Mr Prakul Khurana, Mr Rajat Sharma, Mr Uttam Rane, Ms Jinal Shah, Mr Gunjan Kakad and Mr Jeet Kamdar with PRH Juris Consults, Mr Atul K Jasani, Kevin Shah & Associates, UBR Legal, Mr Harsh Behany, Ganesh & Co, Ms Monika Dokhale-Walve, Mr Kartik Vig, Ms Farzeen Khambatta, Mr Sriram Sridharan, Lumiere Law Partners and Mint & Confreres for Petitioners- Assessees in respective matters. Mr. Suresh Kumar, Mr. Sham V. Walve, Mr. Akhileshwar Sharma, Mr. Ashok Kotangle, Mr. Arvind Pinto, Mr P C Chhotaray, Mr Charanjeet Chanderpal, Mr. P.A. Narayanan, Ms. Mamta Omle, Ms. Swapna Gokhale, Mr. Vikas Khanchandani, Mr. Avadhesh Saxena, Mr. Vipul Bajapeyee and Ms Ruchi Rajput for Respondents-Revenue in respective matters.

CORAM : K. R. SHRIRAM &

N.R. BORKAR, J.J.

DATED : 11TH APRIL, 2022. P.C.

1.

In these cases the notices issued under Section 148 of the Income Tax Act, 1961 (the Act) are after 31st March 2021 but the procedure followed is the old procedure which came to be replaced by the Finance Act, 2021 with effect from 1st April 2021. 2. Counsel state that they do not have any instructions of any assessment order having been communicated to petitioner. Statement accepted. Evenif the assessment order is passed, still it will be non-est as the notice issued under Section 148 of the Act itself is being set aside. 4 of 5

GROUP-I 903 TO 1145.doc 3. & Ors.1 that such notices are bad in law and have to be quashed. Accordingly, notice impugned in these petitions are hereby quashed and set aside.

4.

Petitions disposed accordingly. (N.R. BORKAR, J.) (K.R. SHRIRAM, J.) 1 Writ Petition No.1334 of 2021 dated 29th March,2022 5 of 5

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →